“The VSIP Projects Are the Economic Growth Driver for Vietnam”

Vietnam’s economic growth has been stalled by periods of high inflation followed by a challenging 2012 for many foreign enterprises because of the difficulty in obtaining bank loans and high lending interest rates. The situation has improved slightly in the first three months of 2013. It is important for the government to restore investor confidence in Vietnam. Vietnam needs to ensure a good supply of labour across different skill sets, who are hardworking and productive; a good investment environment with the right policies; a stable economy and a good government.

 

Singapore investments in Vietnam are quite broad based, mostly in property development although such investments are currently affected by poor market sentiments. Singapore manufacturers are interested in Vietnam as an alternative to China, which is experiencing cost escalation. However, there are also other alternative manufacturing locations such as Malaysia and Indonesia.

 

The VSIP projects are the economic growth driver for Vietnam. We have attracted more than 450 companies to invest in Vietnam. These companies bring US$5.8 billion in investment capital and have employed about 139,000 workers. In 2012 alone, the VSIP projects accounted for 11 percent of the nation’s disbursed FDI.

 

In the process, the experiences gained have benefited Vietnamese personnel in terms of international exposure, corporate governance and management.

 

For the new project VSIP Quang Ngai, we are now concentrating on the master plan and industry positioning study. Over at VSIP Hai Phong, infrastructure development will continue for several years as we take a phased approach to development. Investment promotion is ongoing for all our projects. We note that Vietnam is moving up the value chain and preparing for manufacturing processes that require more skilled labour.

Managing the VSIP is a concerted effort which we take seriously because it is important that the projects are sustainable.